UK insurers must tackle privacy concerns to unlock growth in telematics

Over a 4th of UK consumers suggested that a telematics/usage-based security (UBI) argumentation gives them privateness concerns, a GlobalData survey has found. Meanwhile, the telematics supplier IMS has warned that insurers hazard stalling the adoption of UBI policies successful 2026, unless they code user concerns astir information privateness and transparency.

GlobalData’s 2025 UK Insurance Consumer Survey recovered that 27.6% of UK consumers cited information privateness arsenic a cardinal interest associated with UBI policies. The findings suggest that apprehension astir however driving information is collected, stored, and utilized remains widespread, limiting user willingness to prosecute with telematics-led products, adjacent arsenic affordability pressures intensify crossed the centrifugal security market.

Meanwhile, the telematics supplier IMS has warned that insurers hazard slowing the enlargement of personalised pricing and UBI offerings successful 2026, unless concerns astir transparency and information usage are addressed. IMS noted that portion telematics has been positioned arsenic a instrumentality to amended hazard enactment and enactment nonaccomplishment ratio management, uptake successful the UK remains muted comparative to respective European peers. According to IMS, this reflects a spot deficit, alternatively than technological constraints, with galore motorists unconvinced that the trade-off betwixt information sharing and premium savings consistently works successful their favour.

Adoption information from GlobalData’s 2024 Emerging Trends Survey reinforces this disparity. The survey recovered that conscionable 5.8% of UK consumers presently clasp a telematics-based security policy. This compares unfavourably with Italy (17.9%), Spain (13.1%), Germany (9.4%), and France (9.3%). Moreover, the planetary mean adoption complaint stands astatine 14.4%, highlighting the UK’s comparative underperformance, contempt being a mature and digitally-advanced security market.

While telematics and UBI stay strategically-important tools for insurers seeking much granular pricing and improved underwriting performance, persistent concerns astir information privateness and transparency proceed to constrain user uptake successful the UK. Without clearer connection of the worth proposition and stronger reassurances astir information use, insurers whitethorn conflict to standard personalised pricing models astatine pace, adjacent arsenic planetary markets determination further ahead.

"UK insurers indispensable tackle privateness concerns to unlock maturation successful telematics" was primitively created and published by Life Insurance International, a GlobalData owned brand.

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